COMMISSION ON  SUSTAINABLE DEVELOPMENT
Ad-Hoc Intergovernmental Panel on Forest
Fourth Session
10-21 February 1997


       COMPILATION OF SUGGESTIONS PRESENTED BY NON-GOVERNMENTAL
            ORGANISATIONS DURING THE THIRD SESSION OF IPF
                        (9-20 September 1997)
                        (Geneva, Switzerland)


I.    INTRODUCTION

This document contains text suggestions provided by NGO
representatives during the third session of IPF. This information
document has been prepared to provide participants at the fourth
session of the IPF with a record of inputs received from the he NGO
community.  The NGO text suggestions are attributed and shown in
italic and the paragraph numbers correspond to those in
(E/CN.17/IPF/1997/2) the Report of the Ad Hoc Intergovernmental
Panel on Forests on its third session.

II.   TEXT SUGGESTIONS BY PARAGRAPH

21    The Panel recognised the key role of [economic] [(NGO)
sustainable] development in reducing pressure on forests, thereby
allowing sustainable approaches to replace those leading to
deforestation and forest degradation. Each country, whether
developing or developed, will have a particular set of
circumstances, in terms of both the direct and underlying causes as
well as of the scope for action in addressing those causes. In this
context, it is important to consider historical dimensions and to
learn from the experience of developed as well as developing
countries. Many of the factors causing deforestation or forest
degradation interact and some are synergistic. Although some, such
as unsustainable timber extraction, are linked to the forest sector
itself, others lie outside it.  Most causes are social and
economic. Inappropriate policy choices and approaches in other
sectors can influence deforestation and forest degradation.
[Poverty] [ Production] and consumption patterns as well as (NGO)
land tenure patterns, land speculation and land markets have a
major influence on deforestation.

22    The Panel noted that land tenure issues have an important
effect on access to, and use of, trees, soil, water, and forest
[products and forest][ goods and ]services. It is important to
recognise the local initiatives which counter the current trends of
deforestation and forest degradation especially among indigenous
and local communities. Illegal logging and land occupation, illegal
crops, grazing pressure, unsustainable agriculture, the demand for
fuelwood and charcoal to meet basic energy needs,  refugees related
problems, and natural events [such as volcanic eruptions, weather
phenomena and forest fires are important factors  among others, in
many regions.] [Many functions for example unsustainable
agriculture, illegal logging and land occupation, illegal crops,
grazing pressure, the demand for fuelwood and charcoal to meet
basic energy needs and natural events are important factors in many
regions.]

OR

      (NGO) The Panel noted that insecure and inequitable land
tenure patterns have an important effect on sustainable forest
management. 

23     [ Different countries have different requirements and these
requirements change over time and affect both the area and the
nature of their forests. [The benefits [(NGO deletion)  and
disbenefits] of different types of forest,][ The advantages and
disadvantages of different types of forest management][ The
benefits and costs of different types of forest,] [(NGO deletion)
including forest plantations], need to be appraised under different
social, cultural, economic and ecological conditions.] The Panel
emphasised that there are rational justifications for many changes
in forest structure and cover including conversion of plantation
forests and that [(NGO deletion) [deforestation][such changes] need
not necessarily be [harmful][ considered undesirable]] if planned
within national policy frameworks for sustainable land use. [The
Panel recognised that both sustainably managed natural forests and
[(NGO deletion) forest plantations] have a valuable role in meeting
the need for forest [ products][ goods] and services as well as
helping to conserve biological diversity] [It was recognised that
sustainable management and use of both natural forests and forest
plantations, as part of an integrated land-use plan taking into
account relevant environmental and socio-economic concerns,
fulfilled a valuable role in helping to meet the need for forest
products and services as well as to conserve biological diversity
and to increase carbon storage.]

26    The Panel:

a.[Urged Governments,  where relevant, (NGO) and the IMF, World
Bank, Regional Development Banks, WTO, and  FAO, with the
participation of major groups with the support of international
organizations, to prepare in-depth [ strategic] studies of the
implications of [present] [current] consumption and production
patterns for forest goods and services, with both market and
non-market values, in developing and developed countries, with
special emphasis on their positive and negative effects on the
sustainable management and use of forests [ and paying particular
attention to terms of trade, discriminatory trade practices and
unsustainable policies related to such sectors as agriculture and
energy]. These studies should also analyse comprehensively the
historical perspective of the causes of deforestation and forest
degradation in the world and other international underlying causes
of deforestation and forest degradation, including transboundary
economic forces (NGO) international trade, structural adjustment
programmes and external debt [ as well as provide new factual
information on the significance of transboundary pollution];] 30  
 This diagnostic framework not only would serve as a useful tool
both developing and in developed countries for analysing
deforestation and forest degradation but also, in adapted forms,
could be invaluable in setting the objectives of national forest
policies; introducing a historical perspective into the analysis of
the causes;[ identifying causes originating from national and
international consumption and production patterns affecting
deforestation in a particular country] [(NGO) identifying national
and international causes (consumption and production patterns,
international trade, structural adjustment programmes and external
debt, among others) affecting forests in a particular country];
exploring the effects of policies in other sectors on deforestation
and forest degradation and the ways in which modification of such
policies might promote [sustainable forest management] [the
management, conservation and sustainable development of all types
of forest]; using and refining criteria and indicators and methods
of valuation; locating deficiencies in capacity (for example, in
management and supervision, information, research or education);
relating to national action plans for other international
agreements and conventions; and generally as a powerful management
tool in furthering the implementation of [sustainable forest
management][ the management, conservation and sustainable
development of all types of forests].

31    The Panel:

      b.quater (NGO) The Diagnostic framework should take into
account the results of the strategic in-depth analysis of
international underlying causes of deforestation and forest
degradation.


45    The Panel:

b.Urged Governments, with the support of international
organizations such as  [ITTO, UNEP, UNDP, the World Bank and FAO,
to assist national and local governments in the preparation of
technical guidelines on TFRK application, bringing together
knowledge and experience on the approaches that work in practice;]
[ FAO, UNEP, UNDP, ITTO, the World Bank and others to assist
governments in the preparation of technical guidelines for
participatory approaches to TFRK applications; ]

OR

b)   [ (NGO) Urges Governments at national and local level, with
the support of representatives from traditional communities, NGOs
and research institutions to prepare technical guidelines on TFRK
application, bringing together knowlege and experience on the
approaches that work in practice.]

47    The Panel:

b)    [ Encourages][( iii) Encouraging ]Governments with the
support of donors and international organizations to assist [
financially and otherwise] existing networks promoting the sharing
of TFRK  as well as on mutually agreed terms of technology and
profits from biotechnology products derived from these resources]
among concerned groups and institutions in collaboration with
involved  forest dwellers, indigenous people  and local
communities;  (NGO) promoting the sharing of TFRK among indigenous
peoples groups, and concerned groups and institutions.
      

65    [While] emphasizing the need [for consistency]  [to be
consistent with and avoiding duplication]  with actions and
developments under the CCD, the Panel:


a. bis   (NGO) encouraged governments and international
institutions to support participatory research with indigenous
people and local communities in resource management, in order to
provide alternatives that will reduce the pressure on existing
forests in fragile eco-systems affected by desertification and/or
drought.

72    The Panel recognized the seriousness of problems faced by
both developing and developed countries with low forest cover in
satisfying their needs for forest goods and services. [The Panel
felt that there was a need for a more precise identification of
countries categorized as countries with low forest cover. [(NGO)
Definitions should include primary forests, managed forests, and
plantations]. [The existing definitions of forest cover, (for
example those used by the FAO Global Forest Resource Assessment)
namely areas with 20% of minimum crown cover for developed
countries and 10 % of minimum cover for developing countries, do
not have any scientific foundation, nor do they allow for the
comparability of data on a worldwide basis.]]

77    The Panel urged [governments in] countries with low forest
cover 

e)    To [give special attention to the critical need to] establish
[or increase] networks of protected areas buffer zones and
[biological] [ecological] corridors  in order to conserve
biodiversity, particularly in unique types of forests. Close
liaison with activities within the framework of the Convention on
Biological Diversity should be encouraged.  (NGO) A data base
should be created, all information gathering should be transparent
and participatory, and all interested parties should be given
access to the results.;

89    The Panel:

a.)   [Urged donor countries to increase the proportion of their
ODA contribution supporting programmes both in the forest and
forest related sectors for [ conservation,] SFM,  and [forest
related industrial development  to increase the share of domestic
resources allocated to SFM] [community based enterprises in 
response] [(NGO) community-based forestry activities, especially
those dealing with non-timber forest products], and urged [
recipient countries] [to prioritize forests]  [ to raise the
priority of forests] [ to giving priority to SFM] in programming
the ODA available to them;]

e.) bis    (NGO) Urged governments to develop agreed systems to
compensate indigenous and local communities whose use rights are
constrained by biodiversity conservation objectives in parks and
protected areas.

90    The Panel noted that, in general, private capital flows are
growing and are increasingly greater than relatively constant
public funding, taking into account their uneven distribution among
developing countries.  [This trend is also visible in the case of
private investment in forests.]  The Panel recognized, therefore,
that it is critical for countries to take the necessary measures to
introduce appropriate policies and create an enabling environment
to attract private sector investment and to ensure that this
investment contributes to [SFM [ including protection and
conservation of forest resources] ]  [the management, conservation
and sustainable development of all types of forests].  In addition,
policies that encourage local community investment in [SFM]  [the
management, conservation and sustainable development of all types
of forests] in particular those relating to long-term land tenure
and usufruct rights could mobilize significant local financing. 
Measures that encourage private sector activities towards [SFM] 
[the management, conservation and sustainable development of all
types of forests]  include [(voluntary)] codes of conduct of SFM,]
strengthening national regulations and enforcement, [full pricing]
[(NGO) full cost internalization in the pricing] of renewable
resources, and various incentives for better forest management
practices.  The potential of voluntary codes of conduct should be
explored in this regard. Policies and regulations should also be
carefully evaluated before implementation to avoid  negative social
and environmental impacts and market distortions.  At the sectoral
level, market failures create disincentives for investments.
Priority in policy design should be given to the correction of
these failures, including those which are outside the forest
sector.

91    The Panel 

a)    [Encouraged all countries to formulate policies, regulations
and incentives that favor forestry practices that are consistent
with [SFM] [the management, conservation and sustainable
development of all types of forests], including strengthening
national regulations and enforcement to attract private sector
investments.] [ Encouraged countries to promote full pricing of
renewable resources and to formulate policies and incentives as
well as to strengthen and enforce national regulations that favour
forestry practices that are consistent with SFM]. [Formulation of
[(voluntary)] codes of conduct [in cooperation with or] by the
private sector should be further examined]  [In this context,
voluntary codes of sustainable forest management to guide
investments, concessions and forest management should be developed
in cooperation with the private sector and all other major groups,
including indigenous people and local communities. (NGO) Such codes
of conduct should incorporate agreed benchmarks and targets, and
external auditing and public reporting procedures;]

b.)   Invited developing countries [to adjust their policies and
regulations to create a favourable environment to attract domestic
and foreign private sector, as well as local community, investments
for SFM] [(NGO) to adjust their policies and regulations in order
to promote those domestic and private sector investments which
contribute to the achievement of sustainable forest management],
and to attract environmentally sound forest-based industries,
reforestation and non-wood forest product industries [as well as]
for the conservation and protection of forests;

c)    [ [Called upon] [ Invited] [(NGO deletion) developed]
countries to [consider] formulate[ing] and create[ing] incentives,
including [tax breaks,] loan and investment guarantees, to
encourage their private sector to act consistently with best
practices, (NGO) undertake projects, develop, utilize and exchange
technologies and invest in sustainable management [and utilization]
of all types of forests in developing countries as well as
countries with economies in transition.]

92    Community financing is an important element in enhancing the
sustained productivity of forest resources. With appropriate policy
changes there is a real potential for [gaining financial
contributions from local communities] [(NGO) communities to invest
their own financial resources to sustainably manage forests under
their control].  Experience suggests that despite their low level
of income, many forest-dependent communities can mobilize
substantial labour, material, and capital resources for forest
[development] [(NGO) management].

93    The Panel encouraged countries to emphasize community
financing as a fundamental strategy to [(NGO) mobilize resources
for SFM] respond to the need for sustainable resource mobilization
to enhance forest productivity and to establish supportive policy
and programmatic mechanisms and instruments to enable local
investments, in cash or kind, in forest development.

99    The Panel

b)    [Urged]  [Encouraged] countries to assess and explicitly
identify technological requirements of their countries in order to
achieve sustainable management, [conservation and sustainable
development] of their forests (NGO) including identifying
technological requirements in non-forest sector activities which
impinge directly on forests such as shrimp aquiculture and
extensive agriculture. The assessment and identification of
specific technology needs should be consistent with recognized
priorities within  national forest programmes, and other national
policy frameworks;

e.)   [Agreed that priority in technology transfer and
capacity-building should be  established and continually reviewed
[given to the following areas]  [ and could include]: valuation of
forest services, information dissemination to improve forest and
land-use planning and improvement of forest yields; technology and
methods that reduce environmental damage due to current forestry
practices; conservation and protection; species research, including
biotechnology, for tree improvement for rehabilitation,
reforestation and nursery development, and native species research;
technology and methods for enhancing forest values, including
biological diversity; incorporation of indigenous knowledge in
forest management, utilization, rehabilitation and regeneration;
new and renewable sources of energy, in particular fuelwood and its
appropriate substitutes; environmentally sound [logging] [forest
harvesting] technologies [(NGO) for logging, wood processing and
harvest of non-wood forest products]; enhancement of technologies
regarding wood processing, development of new non-wood and wood
forest products; promotion of techniques and design so as to add
more aggregate value to forest products; and development and
implementation of national forest strategies  The Panel is invited
to add new elements to this list.]



119   The Panel:

     d. ter     (NGO)  requested FAO in partnership with other
     international organizations (ECE, UNDP, UNEP), the national
     institutions and NGOs, cooperate to prepare a detailed
     strategic plan for the implementation of Global Forest
     Assessment 2000, including detailed cost and funding options.

     g bis. (NGO) Calls on governments to begin a consultative
     process with all interested stakeholders, at the national,
     sub-national, and local levels, especially encouraging the
     participation of indigenous and rural communities, to identify
     the full range of benefits a given society derives from the
     forest. A general enhancement of the ecosystem approach must
     be taken into consideration.

142.  The Panel welcomed [the progress] [efforts] made in the
clarification of links between the criteria and indicators
appropriate at the national level, (NGO) subnational levels, and
those applicable to the forest management unit level, but [noted
that further analysis was required to make these fully understood]
[recognised that these links will vary from country to country].

144.  The Panel stressed that criteria and indicators should be
used at the national, (NGO) subnational [and forest management
unit] level, or equivalent level of forest management where a range
of benefits is simultaneously generated so as to improve the scope
of [forest assessment] [assessing sustainable forest management]
and the planning and implementation of forest [management plans
and] programmes, taking due account of social, economic, cultural,
[religious] [spiritual] and environmental values [and so as to
achieve sustainable forest management and an appropriate derivation
and apportionment of benefits].

145.  National level criteria and indicators should be formulated
through a transparent process involving all [relevant] [interested]
parties, including forest owners, [native forest dwellers and NGOs]
[forest dwellers, indigenous people and local communities, as well
as major groups, where applicable]. Criteria and indicators for
application at the national level should be [simple,] [practical,]
[(NGO deletion) scientifically based] and cost effective and
reflect inter alia economic, social, biological and ecological
circumstances. [Attention should be given to] [As appropriate,
countries may wish to further examine] the link between the
national level, the sub-national [level] [(NGO) levels] and the
forest management unit level.

148.  The Panel:

g)    urged [donors and international organisations] [donor
countries and multilateral and international organizations], to
provide technical and financial assistance to developing countries
andcountries with  economies in transition in the further
development, field testing and implementation of criteria and
indicators at the national, [and] [sub-national and [field] [forest
management unit] levels][forest management unit level] [(NGO) sub-
national and forest management unit levels] and to support research
through appropriate entities.

g.) (ninth)(NGO) Requested assistance from the Convention on
Biological Diversity in developing criteria and indicators for
forest quality and biodiversity

150.  The Panel recognized the wide range and complexity of issues
on trade and environment in relation to forest products and
services, and the importance of  promoting sustainable forest
management through mutually supportive  trade and environmental
policies. Trade in forest products and services that are renewable
and environmentally friendly resources should be promoted as an
important means of contributing to sustainable development. 
However, it is critical that trade and trade policies for forest
products and services not have adverse management impacts on [the
conservation, use and sustainable development of forests]
[sustainable forest management]. A gradual, continuing process of
consensus-building on these issues is needed.  [This includes
exploring the [possible need for an agreement on trade in forest
products] and [(NGO deletion) voluntary] codes of conduct to
facilitate and improve trade in forest products in specific
areas.][ This includes looking at the potential for voluntary,
private sector codes of conduct, which should be further explored.] 
In view of the complexity of these issues, better coordination for
work carried out by relevant international agencies is essential.

151.  The Panel emphasized that the issues of trade and environment
in relation to forest products and services should be addressed in
a holistic manner and  take into account  chapter 11 of Agenda 21
and the Forest Principles. The Panel therefore considered it
critical that the analyses [and measures] [be conducted in
accordance with WTO~s rules] on these issues  cover international
as well as domestic trade in wood and non-wood forest products and
services from all types of forests . [In special circumstances,
trade [restriction] [ measures] may be necessary to achieve
environmental objectives.] (NGO) , however, this should be
instituted only through established national and international
legal mechanisms and as a last resort when all other options have
been exhausted.  The Panel, however, recognized that there was
inadequate information on international trade in non-wood products
and forest services, as well as [a lack of organized information
on] [insufficient information to allow comparability among] trade
in  domestic markets. Further studies and data-gathering should
therefore be proposed to overcome these gaps in future.

152.  The Uruguay Round of multilateral trade negotiations has made
significant progress in improving market access for forest
products, especially in terms of reducing tariffs on all types of
forest products.  Yet there [are still] [(NGO) may be] barriers to
international trade in forest products, particularly  non-tariff
barriers, which [will] [could] affect better access of forest
products to the international market. (NGO) On the other hand, such
mechanisms may promote the attainment of sustainable forest
management. [These (NGO) potential non-tariff barriers in forest
products, (NGO) which should be examined in relation to their
effects on the achievement of sustainable forest management
include: [the use of export restrictions by developing countries to
encourage domestic processing; and] quantitative restrictions on
[production of "unsustainably produced products"] [imports of
certain forest products.]] [Trade-related measures should be
consistent with the Forest Principles, multilaterally agreed trade
laws and practices, and should be effective in advancing their
stated purpose.]

153.  The Panel

a)    Urged [governments] [ countries] and relevant international
organizations to undertake research on the [effectiveness]
[expected and actual effects] [(NGO) effectiveness and potential
negative effects] of trade [restrictions] [ measures] in forest
products, in terms of meeting [environmental or social]
[objectives] [ objectives for sustainability;] [objectives as well
as the environmental impacts of forest-related trade policies;]

b)    [Requested the World Trade Organization to [further reduce]
[(NGO) adjust] [continue its efforts to promote the reduction of ]
tariff and non-tariff barriers to trade in forest products; (NGO)
to ensure that they are consistent with international efforts to
achieve sustainable forest management [Requested individual members
of the World Trade Organization  to further reduce tariff and
non-tariff barriers to trade in forest products;] [Requested the
Trade and Environment Committee of the WTO to continue its work to
ensure that trade and environment are mutually supportive,
including in the area  of forest products and services;] [Requested
governments, on the basis of this research, to undertake the
necessary steps to promote sustainably produced products, including
a further reduction of tariff and non-tariff barriers to trade in
forest products;]

154.  [ [Wood] [Forest] products obtained from sustainably managed
forests [are] [may be considered to be] environmentally friendly
[products]].  Competition between different [wood] [forest]
products, products from different regions of origin, and wood and
non-wood alternatives is [inevitable.  Available evidence suggests
that such competition, although unlikely to constrain unduly a
global initiative to improve sustainable forest management, [would]
[(NGO) could] have serious implications for the markets for
specific forest products in the future.] [inevitable and does not
constraint efforts to improve sustainable forest management.]
Further economic and market studies,should therefore be carried out
to determine how best to use markets and economic instruments to
promote sustainable forest management.

155   For the majority of developing countries, exports of
processed products represent a small proportion of total roundwood
production. Additional efforts, should therefore be geared towards
promoting more environmentally sound downstream processing
industries and  exports of processed products, consistent with
sustainable forest management (NGO) and wider environmental and
social considerations, in order to increase their contribution to
[economic] [sustainable] development [and to increase export
earnings]. (NGO)  These efforts should not be in the form of tariff
and non-tariff barriers.

156.  The Panel

b)    Urged developed countries and international organizations, in
the context of sustainable forest management, to support efforts by
developing countries to increase their productivity and efficiency
in downstream processing activities [within the constraints of
resource sustainability and wider sustainable development
considerations (NGO) and environmental protection [in order to
increase their export earnings] ];

158.  The Panel:

a)    Called upon relevant agencies to intensify efforts to promote
lesser-used species from all types of forests, (NGO) including
non-timber forest products in the international [market] [market
providing for actions compatible  and consistent with sustainable
forest management];

c)    Urged international agencies and research institutions to
support national and community-level efforts to develop
technologies, including traditional forest-related knowledge [to
increase (NGO) sustainable utilization of lesser-used species.]

159   [ Certification [is (NGO) only one of] [and labelling are
among] many potentially useful tools that can be employed to
promote and respond to sustainable forest management.] [The Panel
recognized that the major goal to be achieved is the sustainable
management of forests. Voluntary certification schemes have a role
to play with regard to the sustainable management of forests.]
[Certification should be seen as a consequence of sustainable
forest management.] [(NGO deletion) The distinction between
certification (which is primarily related to the  implementation of
sustainable forest management) and labelling ( which is related to
products and is primarily a means for marketing) is recognized]. In
view of the potential proliferation of schemes, [the need to
achieve mutual recognition of (NGO) equivalent or comparable
standards and a common understanding among [ international
accrediting][certification and labelling] schemes, is [debated][
important].] [ there is a debate about the need for mutual
recognition.]  [[Before [attempting] [considering] [international
harmonization and] mutual recognition,] [(NGO) In this context] it
is useful to draw upon experiences with using certification in a
wide variety of forest management situations.]

161.  International attention  to the issues of certification of
forest management and labelling of forest products should  be put
into perspective.  To date, only a small proportion of the global
trade in forest products  and a small area of the world~s forests
are influenced by [forest [products]] [forest management] ]
certification and labelling. Because of inadequate information and
relatively few real world experiences, it is still too early to
assess [objectively the effectiveness of] [ objectively the full
potential for] certification and labelling [ in promoting] [(NGO)
to promote] sustainable forest management (NGO) and to stimulate
consumer demand for environmentally-preferable products (end NGO).
However, there is a potential relationship between sustainable
forest management, trade, and voluntary certification and labelling
systems.  More studies and information are required to clarify
various issues about certification and labelling, including the
[impacts] [(NGO) effects] of certification on [small-scale] [(NGO)
all types of ] forest enterprises, competitiveness of forest
products, economic and non-economic costs and benefits,  demand 
for certified products, [the feasibility of country certification,]
the use of criteria and indicators, market implications, governance
and credibility of certification schemes, consistency with
international agreements, and the role of government as a regulator
and in some countries also as a resource owner.

162.  International efforts should focus on ensuring that new and
existing certification and labelling schemes [ [for forest products
are not used in a discriminatory way] [ are open and avoid
discrimination in respect of all types of forests, forest owners,
managers and operators, and are not used] [for forest products are
not used in an arbitrarily or unjustifiably discriminatory way]
[(NGO deletion) as a form of disguised protectionism] Such efforts
should also focus on ensuring the avoidance of conflicts between
WTO rules and the use of voluntary certification and labelling
schemes relating to sustainable forest management] (NGO) are
objective and accurate, and are not used in a misleading,
fraudulent or unjustifiably discriminatory manner.

163.  The Panel:

a)    [ [Agreed ] [Stressed the need ] to bring to the attention of
all actors, including the World Trade Organization the need to
recognize the potential positive relationship between sustainable
forest management, trade and voluntary certification and labelling
schemes, to [ensure] [clarify] that new  and existing certification
and labelling schemes [for any products] in importing and consumer
markets [are not used in  a discriminatory way,] [ are open and
avoid discrimination in respect of all types of forests, forest
owners, managers and operators, and are not used] [(NGO) and are
not used in an unjustifiably or arbitrarily discriminatory manner]
as a form of [disguised protectionism] [disguised protectionism and
are consistent with international trade rules;] [disguised
protectionism and to avoid conflicts between WTO rules and
voluntary certification and labelling schemes relating to
sustainable forest management;] [(NGO) disguised protectionism; and
the need to ensure that WTO rules are interpreted in a manner
consistent with international efforts to promote sustainable forest
management]  Agreed on the need to ensure that new and existing
certification and labelling schemes for forests and forest products
comply with the provisions of the WTO Agreement on Technical
Barriers to Trade;]

164.  The promotion of full cost internalization [is essential for]
[may be useful in expanding] sustainable forest management in the
long term. (NGO) However, only limited consensus exists on
concepts, definitions, measurements, techniques and data
requirements to introduce environmental costs into pricing
mechanisms.  [The transition to sustainable forest management and
the implementation of full cost internalization [(NGO) is likely to
lead to a reallocation of costs and benefits in all regions] [,
however, are likely to impose significant costs, at least in the
short term, on timber operations and forest industries in boreal,
temperate and tropical regions]. There is still uncertainty about
the long-term economic (NGO) , environmental and social
implications (NGO) of this reallocation [(NGO deletion) including
costs and benefits and, in particular, the possibility of losses in
forestry income and export earnings from particular areas.]
[Without full cost internalization, socio-economic and
environmental costs may not be fully reflected in and addressed by
the market. This market imperfection may make unsustainable
practices seem more attractive as compared to sustainable forest
management.  Full cost internalization would therefore favour the
transition to sustainable forest management and rational resource
utilization.] Exchange of information on various research findings
and experiences in relation to costs, (NGO) benefits and policies
[(NGO deletion) and policy mechanisms are] [is] encouraged to[speed
up the implementation] [facilitate discussion] [(NGO) further
discussion] of full cost internalization related to sustainable
forest management.

165.  The Panel:

a)    Called upon governments and relevant international
organisations to examine mechanisms for full cost internalization
[of forest products and competing non-forest products that have
implications for sustainable forest management] [(NGO) for
sustainable forest management];

b)    [Supported efforts by relevant international organisations in
forestry and trade to carry out more independent market and
economic analyses of the potential [additional [stand-level]
[forest management and development costs, as well as] industry-wide
costs resulting from [a transition to] [(NGO) expanding] [and
possible mechanisms for full cost internalization as a tool for
promoting] sustainable forest management, including related policy
reforms; analyses should also examine the potential [long-term]
benefits of improved efficiency and sustainability at all levels of
the forest industry;]

167.  The Panel:

a.bis Called for an [(NGO) global] assessment, by an independent
body or bodies, of the nature and extent of the illegal trade in
forest products, incorporating information from all relevant
sources and major groups.

175.  [The Panel] [In order to improve the integration and
coordination of efforts by agencies and instruments on forest
related issues, the Panel] :

e bis (NGO) Recommends establishment of a mechanism to monitor the
relationship between deforestation patterns and socio-institutional
and political changes at the national level and to evaluate trends
in policy shifts to allow for greater involvement of communities
and other private initiatives in the sustainable management of
state forest lands.

(NGO additional suggestions forProgramme Element V.2)

i     -explore the possibility of regional conventions, such as the
Central American Forest Convention, as a model for a cooperative
approach to forest policy-making

ii.   -continuation and enhancement of the various Criteria and
Indicators initiatives as arenas for similarly furthering common
interest and consensus-building

iii.  -within the context of a coordinating mechanism for existing
forest-related institutions and instruments, the inclusion of a
centralized "Project Clearinghouse" and database, to avoid
duplication in the funding and implementation of forest related
projects by various agencies.

Date last posted: 7 December 1999 12:45:30
Comments and suggestions: DESA/DSD